November 02, 2009

Avera Marshall Regional Medical Center is Purchased by Avera

The city of Marshall has sold the medical center to Avera in Sioux Falls. The $38.5M acquisition became formal on November 2, 2009.

“Today, we celebrate our continued ability to serve the region,” said Bob Byrnes, mayor of Marshall. “Avera has proven to be a good partner for us and this fits our vision for the future. The timing was right for this to happen, given the financial strength of the hospital, the desire by Avera to invest deeper in the community and the city’s interest in divesting itself of health care operations.”

The city of Marshall has paid off bond debt and associated costs, supplemented the public employee retirement benefits that ended with privatization and contributed back $10M to the medical center foundation to support projects including the hospital surgery remodeling and cancer program development and community health and wellness needs. The city will keep $2M to use for public purposes. 

“We believe this to be a solid investment by Avera and consistent with the community’s vision to grow as a regional medical center,” says John Porter, Avera president and CEO. “Our organization’s mission is to provide quality health care for all individuals, and this acquisition benefits both Avera and the Marshall community.”

The medical center, including the hospital and nursing home, will remain nonprofit, with revenues directed back into operations in Marshall. Decisions for the medical center will continue to be made by a local board of directors with input from Avera. Administration will continue to be charged with day-to-day operations.